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The Utilities Supply and Works Contracts Regulations 1992

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Rejection of third country offers

21.—(1) In this regulation an offer of third country origin is an offer to enter a supply contract under which more than 50% of the value of the goods offered originate, as determined in accordance with Council Regulation (EEC) No. 802/68(1), in States with which the Communities have not concluded, multilaterally or bilaterally, an agreement ensuring comparable and effective access for undertakings in member States to the markets of those States or in States to which the benefit of the provisions of Council Directive 90/531/EEC(2) has not been extended.

(2) Notwithstanding regulation 20, a utility need not accept an offer of third country origin.

(3) Notwithstanding regulation 20, where an offer of third country origin is equivalent to an offer which is not of third country origin a utility shall not accept the offer of third country origin unless not to accept that offer would oblige the utilty to acquire goods having technical characteristics different from those of existing goods or an installation resulting in compatibility, technical difficulties in operation and maintenance or disproportionate costs.

(4) In the case of a contract to be awarded on the basis of the offer which offers the lowest price offers are equivalent for the purposes of paragraph (3) above if their prices are to be treated as equivalent in accordance with paragraph (6) below.

(5) In the case of a contract to be awarded on the basis of the offer which is themost economically advantageous to the utility offers are equivalent for the purposes of paragraph (3) above if their prices are to be treated as equivalent in accordance with paragraph (6) below and if disregarding any difference in price the offer which is not of third country origin is at least as economically advantageous to the utility as the offer of third country origin.

(6) The prices of offers are to be treated as equivalent for the purposes of paragraphs (4) and (5) above if the price of the offer which is not of third country origin is the same as or is not more than 3% greater than the offer of third country origin.

(1)

OJ No.L148, 28.6.68, p.1, as amended by Council Regulation (EEC) No.3860/87 (OJ No.L363, 23.12.87, p.30).

(2)

OJ No.L297, 29.10.90, p.1.

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